REVIVAL PREDICTED

Wanganui Chronicle, Volume 80, Issue 263, 5 November 1937, Page 7

REVIVAL PREDICTED

MARKETS IN LONDON GOOD TECHNICAL POSITION LONDON, Oct. 31. There is a widespread feeling that the London markets have touched bottom and responsible brokers are advising their clients to buy because they believe the Stock Exchange is about to experience a great revival. The leadership of gill-edged slocks certainly has been strong. There has I been persistent buying of Government stocks in the past few days. The technical position of the markets is excellent. The Investors’ Chronicle, however, while agreeing that a rally is long overdue, says it considers that there jis no likelihood of a major revival I carrying prices to the levels which i ruled at the beginning of the year. ! Private building in Britain has pass- ' cd the peak. There has been a distinct falling off in the last quarter in new shipbuilding and the demand for heavy electrical goods is lower than at the beginning of the year. The Economist's survey of the State of trade says the volume of business activity in Britain remains at a record ! level, in spite of the falling of securI ity and commodity prices, sufficient to enable many branches of activity to I maintain the current volume of output for many months ahead. The iron, steel and metal using industries are still favourably placed. Deliveries of many products, especially machinery, remain below requirements. The cotton and wool textile trades have experienced a definite reduction of new business. This is attributable to the fall in prices of raw materials. The consumption trades are most 1 active, which is not surprising in view |of the steady growing national income. LONDON, Oct. 31. The recovery on Wall Street unfortunately has not extended to metals. United States copper producers have I lowered the domestic prices but sales remain poor. The lead position also• is discouraging.